World Bank approves $200M program for Armenia

PanARMENIAN.Net - The World Bank has approved a $200 million development policy operation to support Armenia’s economic transformation and climate governance reforms.

According to the World Bank, the funding aims to help Armenia transition toward a more competitive and globally integrated economy, while also introducing systems for emissions monitoring and management.

It was also noted that the OPEC Fund plans to provide parallel financing of up to $92.8 million, bringing the total potential support to around $290 million, Factor.am reports.

The “Armenia Economic Transformation Development Policy Operation” is designed to advance a broad reform agenda, including modernization of the investment and business environment, strengthening competition and consumer protection, and improving the resilience of fiscal and regulatory systems.

“Armenia has an ambitious reform agenda, and we support the country’s efforts to build a more open, competitive, and sustainable economy,” said Fabrizio Zarcone, the World Bank’s Country Manager for Armenia.

He added that a more diversified and resilient economy would create growth opportunities beneficial to all citizens.

According to the statement, the program is built on two main pillars. The first focuses on unlocking investment and trade potential and promoting competition. Measures include modernizing the legal framework for investments, improving customs efficiency, reducing import processing times by 20 percent, strengthening consumer protection systems, and limiting unfair trade practices. It also предусматривает adoption of key laws to support the digital economy, including improvements in cybersecurity governance.

Key actions under the second pillar include adopting a new Climate Law, introducing climate budget “tagging,” establishing a national greenhouse gas emissions permit system, and implementing a green taxonomy to standardize the classification of sustainable economic activities and attract private investment.

The program’s development was supported by the Climate Support Facility and the PROGREEN trust fund, which provided technical and analytical assistance for climate-related reforms. Implementation will be led by Armenia’s Ministry of Finance, with support from the Ministries of Economy and Environment, the State Revenue Committee, the Competition and Consumer Protection Commission, and the Ministry of High-Tech Industry.